Indian messaging app Hike, once a shining star in the startup ecosystem, has succumbed to the pressures of a changing regulatory landscape. Founded in 2012 by Kavin Bharti Mittal, the son of Airtel’s founder, Hike initially emerged as a formidable competitor to WhatsApp, capturing the imaginations of users with its unique features such as hidden chats, stickers, and offline messaging. Backed by prominent investors like SoftBank, Hike quickly amassed over 100 million users and set its sights on becoming a “super app” by integrating various services including news, games, and social networking.
However, the tides began to turn as global competitors like WhatsApp, Telegram, and Instagram gained traction, leading to a decline in Hike’s user base. In 2021, the company made a strategic pivot, shutting down its messaging service to focus on mobile gaming and Web3 initiatives, launching a gaming platform called Rush. Despite this shift, the landscape became increasingly challenging.
Regulatory Challenges and the Final Blow
The Indian government’s introduction of the Promotion and Regulation of Online Gaming Act 2025, which imposed a sweeping ban on real-money gaming platforms, proved to be the final nail in Hike’s coffin. This decision, aimed at addressing serious concerns related to gambling addiction and its consequences, left the -billion real-money gaming industry reeling. Faced with tightening regulations and market constraints, Mittal announced the complete shutdown of the platform.
In a recent statement, Mittal noted that Hike’s U.S. business, launched just nine months prior, had shown promise. However, he emphasized that scaling it globally would necessitate a significant overhaul, which he deemed an inefficient use of resources. “We could raise the capital, but the real question is: is it worth it? Is this a climb worth pivoting for?” he reflected in a Substack post. “For the first time in 13 years, my answer is no. Not for me, not for my team, and not for our investors.”
Hike’s closure serves as a poignant reminder of the complexities faced by tech startups in an ever-evolving regulatory and competitive environment. While the app’s journey may have ended, it leaves behind valuable lessons for future Indian startups, illustrating the importance of adaptability and the harsh realities of navigating legal landscapes. Hike’s story, marked by ambition and innovation, stands as a testament to the potential of Indian entrepreneurs to create impactful digital solutions, even as they confront formidable challenges.
